Binance Is Accused Of Being An Intermediary To Launder $2.35 Billion In Dirty Money

On June 6, Reuters published a particular investigative article alleging that the lax KYC process on Binance helped hackers easily launder money through cryptocurrencies.

Binance is accused of helping to launder dirty money

On June 6, Reuters published a particular investigative article alleging that the lax KYC process on Binance helped hackers easily launder money through cryptocurrencies.

Reuters has provided evidence that the Lazarus Group hacker group with links to North Korea in September 2020 attacked the Slovakian exchange Eterbase and stole more than 5.4 million USD. The hacker then used the encrypted emails to open at least two dozen accounts and disperse the funds.

Lazarus Group is also the hacker group accused of being behind the hack of Axie Infinity’s Ronin bridge that caused $622 million in damage in March 2022, the deadliest attack in the history of the cryptocurrency industry. Binance then participated in the project’s $150 million funding round to compensate users and announced a freeze of $5 million related to the perpetrators.

Reuters claims that between 2017 and 2021, Binance processed more than $2.35 billion in dirty money transactions related to cyberattacks, scams, and illicit drug sales through “black markets” like Hydra.

The newspaper also provides information about the amount of dirty money being flowed to Binance from December 2021, when the exchange expands to the Russian market, where Hydra’s primary operations are, and the time of August 2021, when Binance imposes KYC Required for all users.

This year, Reuters has continuously published articles interviewing former floor employees, revealing a chaotic and lax picture of the KYC process and a “shady” relationship with the Russian government, which is currently financially isolated after the start of the conflict in Ukraine.

Binance then issued a statement denying the information provided in the Reuters article. The exchange asserts that it is applying the most stringent anti-money laundering measures and regularly cooperates with global authorities to track down criminals.

The exchange also believes that because of the transparent nature of blockchain, money laundering through crypto is a risk of being traced more quickly than with cash and thinks that Reuters has given a one-sided picture when omitting the risks. Efforts to cooperate with global authorities and the exchange’s move to increase KYC/AML.

Binance also posted the entire conversation between Chief Communications Officer Patrick Hillmann and Reuters reporters for the community to make their assessment.

The timely announcement of Binance has more or less stabilized the psychology of investors.

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